| Topics and Issues |
In May 2024, Lending Tree posted a blog under the powerful headline, 54% of Buyers Don’t Shop Around for a Mortgage, Even Though 45% of Those Who Do Receive a Better Offer. The report makes some revelatory findings:
- Most homebuyers still aren’t shopping around for their mortgage despite the potential savings. Over half (54%) of those who took out a mortgage for their most recent home purchase only got one loan offer. Meanwhile, 22% got two offers and 17% got three or more. By generation, baby boomers are the least likely to comparison shop, with just 28% doing so. That compares with 62% of millennials.
- Homebuyers are likely leaving money on the table when not shopping around. Among those who compared more than one mortgage offer, 45% say the lowest offer didn’t come from their first lender. Going further, 46% of those who got a mortgage say they went with a lender they didn’t have a prior relationship with.
- Refinancers are more savvy with comparison shopping. Among the 45% of homebuyers who’ve refinanced the mortgage on their current home, 56% shopped around. Comparison shopping paid off for these refinancers, as 81% found a lower rate than their current lender offered.
- Shopper confidence (warranted or not) is the top reason for not seeking more mortgage offers. Among those who sought just one mortgage offer, the top reason for doing so was confidence that they got the best rate (28%), followed by a desire to use the lender with whom their real estate agent had a relationship (20%). Additionally, 14% say they rushed to get financing due to the competitive housing market.
- Mortgage rates influence buyer timelines. Over a third (35%) of buyers say they purchased a home earlier than planned to take advantage of low rates. That’s especially true for men, at 43%, versus 26% of women.
Julia Ryan Evans, 54% of Buyers Don’t Shop Around for a Mortgage, Even Though 45% of Those Who Do Receive a Better Offer, Lending Tree May 28, 2024.